See what's being clicked on FoxBusiness.com.
The luxury fashion brand merger between Capri and Tapestry has officially been called off, the companies announced Thursday. abandon the merger This is because regulatory approval is unlikely.
The proposed $8.5 billion merger was first announced in August 2023 but has faced scrutiny from the government. Federal Trade Commission (FTC)filed a lawsuit earlier this year seeking to block the deal over concerns it would stifle competition in the luxury handbag and accessories sector. In late October, a federal judge blocked the merger, citing competition issues it would raise.
U.S. District Judge Jennifer Rochon said the companies' defense of the deal hinges on the argument that handbags are non-essential goods whose price is driven by consumer preference. “It ignores the fact that it's important for more than just expressing yourself.” Our aim is to support their daily lives, not through fashion. ”
If the merger went ahead, it would have combined Tapestry's Coach, Kate Spade and Stuart Weitzman brands with Capri's Versace, Jimmy Choo and Michael Kors. Leaders of both companies outlined their future direction after abandoning the merger.
Federal judge blocks luxury brand merger between Tapestry and Capri
A sign showing the location of a Versace store in Chicago, Illinois, on August 10, 2023. Tapestry, the luxury fashion company that owns Coach and Kate Spade, has acquired Capri Holdings, the parent company of Versace and Michael Kors. (Photo by Scott Olson/Getty Images/Getty Images)
“With the termination of the merger agreement, we are now focused on the future of Capri and our three iconic companies,” Capri CEO John D. Idle said in a statement Thursday. said. luxury housing. ”
| ticker | safety | last | change | change % |
|---|---|---|---|---|
| CPRI | Capri Holdings Co., Ltd. | 20.94 | +1.30 |
+6.62% |
| TPR | Tapestry Co., Ltd. | 58.36 | +7.09 |
+13.83% |
“Given our performance over the past 18 months, we recently began implementing a number of strategic initiatives to get our luxury brands back on track for growth. Across Versace, Jimmy Choo and Michael Kors, we focuses on exciting communication, compelling brand appeal. omnichannel consumer experience. Although our strategies are uniquely tailored to each brand, our overarching goals are similar,” Idol added.
FTC Chair Lina Khan defends merger and acquisition enforcement
A pedestrian walks past a Michael Kors store on August 10, 2023 in Chicago, Illinois. Tapestry, the luxury fashion company that owns Coach and Kate Spade, has acquired Capri Holdings, the parent company of Versace and Michael Kors. (Photo by Scott Olson/Getty Images/Getty Images)
“While we have always had multiple paths to growth, today's decision provides clarity on our future strategy,” said Tapestry Chief Executive Officer Joan Crevoisella. We will work with speed and boldness to accelerate the growth of our organic business.”
“Tapestry remains in a strong position with its distinctive brand, agile platform, passionate team, and strong cash flow. We have great growth ahead of us and believe there is no better investment.” We are therefore pleased to announce today an additional shareholder return program that exceeds our inventory at this time,'' Crevoissera added.
Capri stock has lost about half its value since a judge blocked the merger last month.
Shoppers stand at the entrance of a Coach store in New York. (Photographer: Michael Nagle/Bloomberg via Getty Images / Getty Images)
CLICK HERE TO GET FOX BUSINESS ON THE GO
Tapestry's stock price on Thursday Stock buyback Due to the dissolution of the merger.
